FRANCE: Carrefour Tops Estimates With H1 Growth

Carrefour has reported better-than-expected results for its fiscal first half, which the world’s second-largest retailer claimed as evidence that its revival strategy is working.

For the six months to end-June, recurring operating profit was up 5.3% to €706m, while net sales grew by 2.2% to €36.3bn on a constant-currency basis (+2.9% organic basis).

Sales in Europe were down 0.3% to €26.6bn on an organic basis, while emerging markets reported a 10.1% increase to €9.7bn.  Results in Europe were affected by slight weakness in France, although the rest of Europe reported gains.  It recorded solid growth in Asia, while Latin America continued to contribute strong gains.

CEO Georges Plassat that the group may launch separate IPOs of its property and Brazilian units in 2017. Such moves could help generate extra cash to fund the group’s expansion while unlocking value within Carrefour’s asset portfolio.

NAM Implications:
  • A good result, reflecting the relative growth of emerging vs traditional markets…
  • Getting your fair share?
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